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Zero Collateral DaiZero Collateral Daiby0x9E64B47bBdb9c1F7B599f11987b84C416C0c4110jamis.eth

Fix hyperinflation by lowering the peg then 4:1 migration

Voting ended about 5 years agoSucceeded

This vote is to gather community sentiment and can be voted on if you are unlocked and bonded in the DAO.

🚧 Re-pegging ZAI is a straightforward solution to a hard problem. The community has bounced around many, many ideas (head on over to #governance in discord for more details). A re-peg simultaneously addresses hyperinflation head-on while also being extremely simple in code. Given the urgency of the situation, this is a fix we can push quickly and be confident in.

1️⃣ $0.25 Repeg + Migrate to v2 with 4:1 Token Exchange:

The bug inflated supply from 100mm to 400mm. Re-pegging to 25c will in essence return us to the system dynamics that were in place before the inflation bug. 100mm tokens attempting to reach a peg of $1 is equivalent to 400mm tokens attempting to reach a peg of 25c. It's not pretty, but it's the most stable, quick, easy, temporary fix we have at our disposal right now until we can finish programming the migration. After this patch is deployed we can begin the longer process of migrating to ZAI v2 where we will have a migration portal of 4:1. Here is an example: you have 4 ZAI v1 worth $1 at the $.25 peg, you then migrate to 1 ZAI v2 worth $1 at the $1 peg. The fix is one-line of code and has the highest guarantee of having no effect on other system mechanics.

2️⃣ No Re-peg:

We wait for a better solution. The risk here is a huge amount of capital is being freed in two days and without proposing a solution to inflation, in my opinion, most of that capital will sell and leave the protocol for good. The upside to voting No Re-peg is we may find a better long term solution. Keep in mind we have a dearth of solidity developers and we already spent a ton of time vetting many many options the last three days.

⚠️ NOTE: We are still reviewing implications of a re-peg. At present, because the code merely checks the Uniswap TWAP price for expansion and debt, there shouldn't be any changes required to LP's.

Off-Chain Vote

25c Repeg + 4:1 Migration
0 99.5%
Cont Looking for Other Solutions
0 0.5%
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Timeline

Jan 12, 2021Proposal created
Jan 12, 2021Proposal vote started
Jan 13, 2021Proposal vote ended
Feb 04, 2025Proposal updated